Dr. Muda Yusuf Urges Bold Reforms and Digital Transformation to Unlock Nigeria’s Oil & Gas Future

At the Annual Public Lecture and Symposium of the Nigeria Union of Journalists (NUJ), NAN Chapel, held at the NPA Sports Centre, Lagos, Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), delivered a thought-provoking paper on the theme “Unlocking the Potential of Nigeria’s Oil & Gas Sector and Promoting Digital Transformation.”

In his keynote, Dr. Yusuf reflected on Nigeria’s oil and gas sector, describing it as both the nation’s economic lifeline and its Achilles’ heel. For decades, the sector has accounted for more than 80 percent of foreign exchange earnings and nearly half of government revenue. Yet, he admitted, it has been weighed down by deep-rooted challenges that have stunted growth and scared away investment.

He recalled how, despite Nigeria’s OPEC quota, production has lagged, while insecurity, pipeline vandalism, and underinvestment eroded the nation’s energy dominance. “For years,” Yusuf noted, “our oil wealth has been undermined by policy inconsistencies, regulatory overlap, and structural dysfunctions.”

But the story, he stressed, is shifting. Recent reforms, especially the renewed implementation of the Petroleum Industry Act (PIA), coupled with a reported 20 percent sectoral growth in Q2 2025, have injected optimism into the industry. According to him, these gains signal that Nigeria is at a decisive turning point.

Legacy Challenges

Reflecting on the past, Dr. Yusuf outlined six major hurdles that have held the sector hostage:

• Regulatory uncertainty marked by multiple taxation regimes and inconsistent subsidy policies.
• Oil theft and sabotage, which drain up to 400,000 barrels daily.
• Underinvestment in exploration, reserves growth, and gas commercialization.
• Financing bottlenecks worsened by forex volatility and declining global hydrocarbon funding.
• Weak downstream capacity, forcing Nigeria to remain dependent on fuel imports.
• Global energy transition pressures, with IOCs divesting and local players struggling to fill the gap.

Policy Imperatives

To reposition the sector, Yusuf called for full PIA implementation, stronger security architecture, transparent licensing, and improved fiscal incentives. He emphasized the need for stable FX policy, operational refineries, and a clear energy transition roadmap anchored on natural gas while simultaneously scaling up renewables.

The Digital Imperative

Perhaps the most striking part of Yusuf’s reflection was his call for digital transformation as the new lifeline of Nigeria’s oil economy. He stressed that in the modern energy landscape, digitalization is no longer optional.

“Global investors now demand transparent, data-driven systems and ESG compliance before committing funds,” he warned. Technologies like IoT, blockchain, AI surveillance, and digital twins, he said, could significantly reduce operational risks, improve transparency, and unlock financing opportunities.

He explained how digital systems can boost asset valuation, enhance production monitoring, ensure compliance with ESG standards, and even combat oil theft through drone and AI-enabled surveillance. However, he cautioned against challenges such as poor infrastructure, skills gaps, fragmented regulations, and cybersecurity risks.

A Call to Action

In his closing, Yusuf urged Nigeria to treat this moment as a historic opportunity to reinvent its oil and gas sector. “Potential is not enough,” he declared. “With coherent policies, strong institutions, and digital transformation, Nigeria can restore investor confidence, boost production, create millions of jobs, and secure a prosperous energy future.”

The lecture left the audience with a powerful reflection: Nigeria’s oil and gas sector may be riddled with scars of the past, but with the right reforms and digital leap, it can still fuel the nation’s future.

At the NUJ NAN Chapel Annual Lecture, Dr. Muda Yusuf called for bold reforms and digital transformation to unlock Nigeria’s oil & gas potential, restore investor confidence, and secure the nation’s energy future.